Chrysler Renegotiates Contract with GM on Dual Mode Hybrid Engine

It seems Chrysler is trying to opt out of paying up their share for developing the dual mode hybrid engine. GM, Chrysler, and BMW partnered to create the dual-mode hybrid engine which is suitable for their SUVs and trucks. Chrysler used the new hybrid engine in the Chrysler Aspen and Dodge Durango hybrids, which were subsequently killed off after just two months.

But Chrysler still wants to use the dual-mode hybrid engine in the Dodge Ram 1500 Hybrid next year.

But when they filed for bankruptcy, the company was split into old Chrysler and new Chrysler (Source: GM Looks for Two-Mode Hybrid Payments from Chrysler - PickupTrucks.com News). The new Chrysler was bought by Fiat, but did not bring along many of the old contracts. And the contract with GM for the dual-mode hybrid engine was left behind. Now, Chrysler wants to renegotiate the contract they had with GM.

Chrysler would like to pay just $173,477 to settle the full $531,275 in costs associated with: open receivables, payments for 2008 manufacturing costs, tooling, pre-production transmissions for the Chrysler Aspen and Dodge Durango Two-Mode Hybrid SUVs (which were killed after only two months of production), and supply agreements.